RMD- IRA’s and 401(k) for owner of company
Just to confirm…a client who is required to take a RMD and has IRA’s and is still working and has a 401(k) account (he is an owner of the company). He has to add up the total of all accounts to determine his required distribution, but he can take the distribution from only one of the accounts. Correct?
Permalink Submitted by Alan Spross on Wed, 2010-12-08 21:09
No, not correct. An IRA RMD cannot be combined with a qualified plan RMD. Each RMD must be calculated separately and taken out of the respective account.
IRA RMDs can only be combined (ie aggregated) with other owned IRAs. Qualified plan RMDs can never be combined with other qualified plan RMDs or IRA RMDs.